Fletcher in the News

Hidden Costs of Cash: IBGC Study in ATM Marketplace

Date: September 16, 2013

There has been a lot of excitement around alternative payment methods such as mobile wallets. But the impending demise of cash may be a little exaggerated. Cash is very resilient and not going away anytime soon.

However, an interesting study by the Fletcher School at Tufts University concludes that there are hidden costs associated with continued use of cash. Households, businesses and government all pay a price for the love-fest with folding money.

For businesses, the biggest cost of cash can be linked to theft, followed — at a considerable distance — by ATM operations and cash transit.

The Tufts report estimates that continued use of cash traps $200 billion in value within the economy.